Warren Buffett should be buying gold this year as the commodity is expected to surge in value.
The stock market is expected to face turbulence.
The flight to safety and constrained supply will be catalysts for gold.
Warren Buffett’s faith in the stock market is legendary. The Oracle of Omaha has cut his teeth in the U.S. stock market and is an ardent advocate of the asset class. But there’s a chance that Buffett has lost confidence in the stock market of late, which is why he should be looking at gold as an investment.
Gold is currently trading at a spot price of $1,566 an ounce, but it’s widely believed that the commodity will end the year past the $2,000/oz. level.
The price of gold has soared in the past year, and it isn’t done yet. | Source: Kitco
City Index technical analyst Fawad Razaqzada is one of many who believes that gold will hit that magic mark this year thanks to a correction in the stock market:
If U.S. stocks were to correct themselves in 2020, then this surely could lead to elevated levels of safe-haven demand for gold … As the U.S. equity market bubble finally bursts, safe-haven demand could nudge gold past its 2011 peak of $1,920, before tagging the $2,000 psychological hurdle.
Razaqzada’s prediction is already coming true as investors are abandoning the stock market and loading up on gold thanks to geopolitical tensions. This is something Warren Buffett should have done as the rising tensions between the U.S. and Iran have sent gold prices to seven-year highs. Equities are expected to struggle in 2020 in light of a protracted conflict in the Middle East.
Higher oil prices will dent consumers’ spending power in the U.S. and also hurt corporate earnings. That’s bad news for Warren Buffett as he might have to keep sitting out of the stock market this year. The other option for Buffett is to buy gold.
Gold demand is expected to remain strong in 2020 on the back of central bank buying and the flight to safety, laying the groundwork for higher prices. Constrained supply will also play a role in boosting gold prices. BMO Capital Markets forecasts that gold production will decline in 2020, paving the way for prices to increase.
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Warren Buffett’s hunting ground is in trouble this year
In his letter to shareholders a couple of years ago, Buffett had said:
The magical metal was no match for the American mettle.
The legendary investor was comparing gold’s returns to that of stocks, albeit in a skewed way. He was comparing how much a $10,000 investment made in stocks and gold back in 1942 would be worth in 2018. But what Buffett conveniently forgot is that the price of gold in the U.S. was fixed by law until 1975.
It’s a noble thought to have faith in America’s economy and invest in the stock market. But Buffett seems to be forgetting that the American economy is not in the best of shape this year, and companies listed on the stock market are overvalued. If U.S. companies are unable to meet earnings growth targets in 2020, their stock prices will crash in the event of a correction.
Gold returns have been way better than stocks over the past two decades. | Source: Ycharts
Gold will continue to shine in such a situation. As it turns out, gold prices have handily beaten the broader stock market in the past 20 years and the yellow metal is your best bet at a time when a crash is in the offing.
So, it would be prudent for Warren Buffett to seriously consider an investment in gold this year and put his billions to work. If Buffett doesn’t do that, gold could become the greatest investment he never made.
Disclaimer: The opinions in this article do not represent investment or trading advice from CCN.com.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
